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Elite Germplasm For Gmo'S In Brazil: Modeling Government-Agribusiness Negotiations

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  • Lesser, William H.
  • Schmit, Todd M.
  • Ruiz, Lilian M.

Abstract

Advances in agricultural biotechnology have led to interest by agribusiness to license elite germplasm from national programs in developing countries, now in need of funds. Uncertainties about the value of the material have delayed negotiations. This article proposes a method of setting upper (monopoly; no seed saving) and lower (competitive) negotiating bounds on values. The model accounts for (1) annual productivity enhancements, (2) effects on world prices, and (3) obsolescence effects of greater R&D. A demonstration application for soybeans in Brazil, which has completed the preconditions (IPR, biosafety, internal policy), suggests limited private value for public germplasm. The optimal solution is cooperation (licensing).

Suggested Citation

  • Lesser, William H. & Schmit, Todd M. & Ruiz, Lilian M., 1999. "Elite Germplasm For Gmo'S In Brazil: Modeling Government-Agribusiness Negotiations," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 2(3-4), pages 1-16.
    • Handle: RePEc:ags:ifaamr:34233
    DOI: 10.22004/ag.econ.34233
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    References listed on IDEAS

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    1. LeRoy Hansen & Mary Knudson, 1996. "Property Right Protection of Reproducible Genetic Material," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 18(3), pages 403-414.
    2. Heien, Dale & Pick, Daniel H., 1991. "The Structure Of International Demand For Soybean Products," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(1), pages 1-7, July.
    3. William D. McBride & Nora Books, 2000. "Survey evidence on producer use and costs of genetically modified seed," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 6-20.
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